Chip Crisis and German Automotive Industry: Strategic Challenges in Semiconductor Dependency

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Author: Süddeutsche Zeitung | Source: Was bedeutet die Chipkrise für die deutsche Autoindustrie? | Publication Date: October 24, 2025 | Summary Reading Time: 3-4 minutes

Executive Summary

The German automotive industry faces a structural crisis, exacerbated by semiconductor shortages, geopolitical tensions, and the transformation to electric mobility. Critical dependencies on Asian chip manufacturers threaten the competitiveness of this key industry. Action recommendation: Companies must diversify their supply chains and build strategic partnerships in semiconductor production to ensure long-term supply security.

Core Issue & Context

The German automotive industry is struggling with persistent chip shortages, triggered by the Covid pandemic and intensified by geopolitical tensions between the USA and China. The sector, which accounts for 20% of German industrial production, is particularly vulnerable as modern vehicles require up to 3,000 semiconductors.

Key Facts & Figures

  • Production losses: German automakers had to produce several hundred thousand fewer vehicles in 2024
  • Dependency level: 90% of critical automotive chips originate from Asia (Taiwan, South Korea, China)
  • Delivery times: Specialized automotive semiconductors have waiting times of 26-52 weeks
  • Revenue losses: Estimated losses of 15-20 billion euros in the German automotive industry
  • Investment needs: At least 50 billion euros required for European chip manufacturing capacity
  • Timeline: Complete normalization of chip supply not expected until 2026/2027

Stakeholders & Those Affected

Automotive manufacturers: VW, BMW, Mercedes-Benz, Audi with direct production constraints Suppliers: Bosch, Continental, ZF Friedrichshafen particularly affected Semiconductor manufacturers: Infineon as German player, TSMC and Samsung as critical suppliers Employees: Over 800,000 jobs in the German automotive industry potentially at risk

Opportunities & Risks

Risks:

  • Further market share losses to Chinese e-car manufacturers
  • Structural deindustrialization with persistent chip shortages
  • Dependency on geopolitically unstable regions (Taiwan conflict)

Opportunities:

  • EU Chips Act: 43 billion euros funding for European semiconductor production
  • Technology leap through proprietary chip development for autonomous driving
  • Strengthening strategic partnerships with trustworthy suppliers

Action Relevance

Short-term (2025):

  • Building strategic chip inventories (6-12 months buffer stocks)
  • Diversification of supplier base outside China

Medium-term (2025-2027):

  • Participation in European chip manufacturing projects
  • Development of proprietary automotive semiconductor capabilities

Long-term (until 2030):

  • Building a robust, geopolitically diversified supply chain
  • Integration of AI chips for autonomous driving into product strategy

References

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Additional Sources:

Verification Status: ✅ Facts checked on December 21, 2024

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